Ghana’s mineworkers’ union has stepped up its opposition to a new policy that pushes mining companies to hand over key operations to locally owned contractors.
Even though many large firms have started following the directive, the union says it may take industrial action if authorities fail to address its concerns.
The Minerals Commission is enforcing this policy as part of wider reforms to increase local participation in the mining sector. Under the rules, only fully Ghanaian-owned companies can handle surface mining, while underground work must involve firms with at least 50 percent local ownership.
The Ghana Mineworkers’ Union believes the policy could weaken labour protections and undo years of progress made through collective bargaining. Its General Secretary, Abdul Moomin Gbana, warned that workers might go on strike or protest if the situation does not improve.
Speaking to Reuters, he said local contractors often pay lower wages and offer less job security than multinational companies. He also criticised the process, saying the union was not consulted before the policy was introduced.
The directive requires major global companies such as Newmont Corporation, Zijin Mining, and AngloGold Ashanti to transfer tasks like blasting, hauling, and dumping to local contractors by December 2026. Companies that fail to comply could face penalties.
Some industry leaders have also raised concerns. They argue that the policy may clash with existing mining laws, which allow leaseholders to decide how to run their operations.
Others worry that the changes could discourage investment if they are not properly aligned with the legal framework. The union’s resistance echoes an earlier attempt between 2017 and 2018 to stop contract mining at Gold Fields, which did not succeed and later encouraged wider use of contractors.
A key issue for the union is the growing pay gap between contract workers and those directly employed by mining companies. Reports show that contract workers sometimes earn up to half the salary of their counterparts. Some workers have also complained about delays or inconsistencies in pension and provident fund payments.
Mr Gbana warned that even if companies keep the same number of workers, the shift to contract mining could gradually reduce wages and benefits. He also questioned whether some local contractors can meet proper labour standards. However, one company, Rocksure, has defended its practices, stating that it meets all legal and contractual requirements.
The Minerals Commission has acknowledged these concerns and says it plans to tighten supervision of contractors. Its Chief Executive, Isaac Tandoh, explained that stronger oversight would help prevent unfair pricing practices that often lead to lower wages and poor working conditions.
He added that some service rates in the sector have dropped sharply, putting pressure on contractors and workers alike. To fix this, the Commission is considering setting clearer pricing guidelines and offering support, including partnerships and technical assistance for local firms.
